Department Store Category Posts Dismal October Sales

November 5, 2008

Department stores across the board posted disappointing sales in October.

J.C. Penney Co. on Thursday said its October same-store sales fell 13%, not quite as much as Wall Street projected. However, the retailer said it expects a big drop-off in November sales and reduced its profit outlook for the third quarter.

Total sales for the four weeks ended Nov. 1 fell 12% to $1.36 billion, from $1.54 billion in the corresponding period last year.

J.C. Penney said the results reflect "ongoing declines in mall traffic and a pronounced slowdown in consumer spending, which continues to be influenced by financial market volatility and tightening credit availability."

The chain said its apparel divisions continued to be its strongest performers, with women's and children's clothing and women's accessories showing the best results in October. Its recently launched private brands "are achieving early success" despite economic conditions, it said in a statement. Home and fine jewelry were among the weakest segments.

Kohl's Inc. said Thursday that same-store sales fell 9% in October, a bigger drop than analysts expected, Total sales for the four weeks ended Nov. 1 fell nearly 5% to $1.21 billion.

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